If a buyer has a home loan pre-approval for an unspecified property, which specifies an expected amount of loan, down-payment, and price, what happens if they make an offer on a less expensive house (or get accepted on a lower bid than they were pre-approved for)?
Do the terms change if the loan amount will be significantly less?
Would there ever be an advantage to wait for a new pre-approval with the actual price and loan amounts before making an offer?
It seems like there would be if the down payment is going up and crosses a threshold that would affect the loan rate. Though is the rate always going to be the same if the down payment was going to be at least 20% already?
It also seems like the monthly payments would be different if the loan amount is different - does that require a new pre-approval before making an offer?